Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81271
Authors: 
Lundin, Nannan
He, Ping
Qian, Jinchang
Sjöholm, Fredrik
Year of Publication: 
2007
Series/Report no.: 
IFN Working Paper 708
Abstract: 
FDI can be an important channel for developing countries’ ability to get access to new technology. The impact of FDI on domestically-owned firms’ technology development is less examined but it is frequently argued that technology externalities or demonstration effects could have a positive impact. Another and so far little examined effect of FDI on technology development in domestically-owned firms is through the impact on competition. We examine the effect of FDI on competition in the Chinese manufacturing sector and the effect of competition on firms’ R&D. Our analysis is conducted on a large dataset including all Chinese large and medium sized firms over the period 1998-2004. Our results show that FDI increases competition but there are no strong indications of competition affecting investments in R&D.
Subjects: 
China
FDI
Competition
R&D
JEL: 
F23
L11
O31
Document Type: 
Working Paper

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